Cheap toys imported under de minimis rules may be dangerous, group saysExBulletin

U.S. Customs and Border Protection says it processes some 4 million de minimis shipments each day. Here, CBP officers watch international shipments come off a plane at Los Angeles International Airport. Ya-Huei Laura Lee/CBP .

rock the legend Ya-Huei Laura Lee/CBP

If you're tempted to buy kids' toys at rock-bottom prices online this holiday season, consumer rights advocates want you to think twice or even thrice. This $8 gift may not meet U.S. safety standards intended to protect children.

“A lot of people think that just because a product is for sale doesn't mean it has to be safe,” Teresa Murray of the Public Interest Research Group consumer watchdog told NPR. “And that’s incredibly wrong.”

As a spokesperson for the U.S. Consumer Product Safety Commission says: “If the price seems too good to be true, it may be a sign that the product is not authentic and may be dangerous.” »

Potential risks from children's items range from exposure to lead and phthalates to choking hazards from small parts or button-sized batteries. Flammability is also a concern.

How do these discounted items reach American homes?

“When you buy a toy or other product online and it is shipped directly to you from another country, it is usually not inspected before it arrives in your mailbox,” Murray writes in the Trouble in report. PIRG Toyland for 2024.

Items are more likely to escape scrutiny, Murray says, if they are sent under what critics say is a loophole in U.S. law. It's the same strategy that online retailers have used to send cheap clothing to the United States and that smugglers use to ship fentanyl and counterfeit drugs to the United States. For toy sellers, the strategy helps foreign companies undercut U.S. retailers' prices and circumvent security requirements.

The law is said to be de minimis. Even though this name implies something small, it's a big deal. Since 2014, the number of shipments entering the United States under the de minimis exemption has increased each year from 140 million to 1 billion in 2023, according to the White House. They now account for the bulk of goods entering the United States, according to U.S. Customs and Border Protection, and flooding is only increasing. The agency processes some 4 million de minimis mailings every day.

A large portion of shipments come from China and Murray points out that many Chinese imports, including toys, are not a problem.

“Only a small percentage have been deemed unsafe, and these are typically sold directly to the consumer or enter the country via de minimis shipments,” she wrote in her report.

Many de minimis shipments come from China, and one consumer advocate says the vast majority of Chinese toys imported into the United States pose no problems, particularly if they are sold by a reputable company. Here, workers produce teddy bears for export at a toy factory in Lianyungang, east China's Jiangsu province, November 22, 2024. STR/AFP via Getty Images/AFP hide the legend

. STR/AFP via Getty Images/AFP What is de minimis?

The de minimis exception began as a way to allow travelers and businesses to avoid import taxes and duties when shipping low-value items.

Around a hundred countries have de minimis thresholds; the amounts differ around the world. In the European Union, shipments worth less than 150 euros (about $160) may be eligible. The U.S. level used to be $200, but in 2016 it rose to $800, one of the highest in the world, when then-President Barack Obama signed the Trade Facilitation and Trade Enforcement Act.

Companies that focus on the de minimis exclusion use it as a duty-free pipeline to the United States and can pay less taxes than a U.S. company selling a similar product.

This rule is part of the success of retailers like China's Temu, which bases its business model on streamlining the connection between manufacturers and consumers.

The use and abuse of de minimis measures is increasing

Unscrupulous exporters aggressively exploit “de minimis”. For example, they significantly undervalue items or list many items as a single shipment worth less than $800.

In one egregious case last year, a disassembled helicopter was shipped from Venezuela to the seaport of Fort Lauderdale, Florida, under de minimis rules, described as “personal effects,” according to a recent Customs and Enforcement report. border protection.

Faced with screening a torrent of incoming packages and goods labeled as de minimis, the CPSC says it is working with CBP to assess the potential risks of shipments, flagging those most likely to fail to meet U.S. requirements.

“All children's products and toys must have certificates of conformity, which affirm that these products meet our standards,” the CPSC spokesperson told NPR by email. Products shipped under the de minimis exemption are still subject to inspection and enforcement, they added.

Still, the agency urges consumers to be wary of potential dangers to children when purchasing items online, especially if the price is incredibly low.

What can consumers do?

First, experts say, don't walk away from companies you know and trust, even if a toy ad promises a more attractive price.

“We rarely say, 'You shouldn't do that.' But this is one of the exceptions,” says Murray, warning against the lure of rock-bottom prices from unknown foreign retailers who advertise heavily on social media and in search results.

“We believe that people who shop online need to be much more careful about where they are actually shopping,” she adds. “They're not working with a U.S. retailer or distributor. And you just don't have that middleman to look after your interests. So we urge people not to buy through the ads you see on social media .”

The CPSC agrees that consumers need to know who they are buying from.

“Even if they're browsing a well-known online site, look for 'sold by' information,” says the CPSC spokesperson. “If you don't recognize the seller, you may want to do more research or select another product.”

Consumers can also check if the toy is covered by a CPSC recall and review reviews at SaferProducts.gov. And be sure to carefully study all toy images, including labels and packaging, to help you avoid unsafe or counterfeit products.

“It’s just a disaster,” Murray says. “I mean, there can’t be anything more important than our children.”

Bipartisan efforts push for change

Proponents of the de minimis principle say it helps keep trade flowing, at low cost to businesses and consumers. That includes John Pickel, senior director of international supply chain policy at the National Foreign Trade Council, who notes that de minimis shipments are subject to the same federal monitoring and enforcement requirements as higher-value shipments. .

Pickel warns that setting new limits on de minimis would result in billions of dollars in harm, citing a recent working paper by researchers at Yale and UCLA that predicted that removing de minimis would harm low-income communities. But critics of the de minimis principle say it harms these same communities by making it easier to access unreliable and potentially dangerous products.

“De minimis is a loophole for cheap and sometimes dangerous Chinese products,” Sen. Bill Cassidy, R-La., said in a statement to NPR. “Congress must protect American consumers from harmful Chinese trade practices, for which de minimis is the most egregious of all, and level the playing field for small businesses.”

Cassidy has introduced bills to change the de minimis rules, including one co-sponsored by Sen. Tammy Baldwin, D-Wis. Both senators plan to try again in the next Congress.

The White House recently outlined new rules aimed at softening the fire of de minimis imports, citing “China-founded e-commerce platforms.” And in its annual report to Congress, the U.S.-China Economic and Security Review Commission called for an end to normal, permanent trade relations with China, a status reserved for U.S. allies.

The panel said Congress should eliminate the de minimis exemption for imported items purchased online. He also urged lawmakers to increase CBP's resources to help it enforce the rules.

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